Fraser & Neave (F99.SG) giving up most of today’s gains as investors content to take profit after run-up in intraday trade to almost 3-year high of $5.92 (+4.4%), while awaiting actual benefits arising from Kirin Holdings’ (2503.TO) entry as substantial shareholder, according to Dow Jones.

Shares last +0.9% at $5.72. Despite pullback, analysts generally upbeat over Kirin’s presence. “This deal does open F&N to the possibility of divesting or spinning off its property business, which will unlock value,” says CLSA, which has Outperform call with $6.50 target. Notes Kirin not interested in F&N’s property business, which accounts for 70% of Singapore company’s earnings; hence if property arm divested or spun off, resultant partnership in breweries business will be “highly synergistic”.

Shares unlikely to revisit intraday high for rest of session.

Written by The Edge

Tuesday, 27 July 2010 15:43